The U.S. Securities and Exchange Commission (SEC) has taken a significant step toward deepening regulatory cooperation with El Salvador’s digital asset authority. According to a memo released by the SEC’s Crypto Task Force, U.S. officials held direct talks with El Salvador’s National Commission on Digital Assets (CNAD) on April 22 to discuss the formation of a joint crypto regulatory sandbox.
The meeting included members of El Salvador’s legal delegation, representatives from Perkin Law Firm, and former Goldman Sachs partner Heather Shemilt. Discussions focused on establishing a framework that would allow U.S.-licensed brokers to test digital asset offerings in El Salvador under a controlled, collaborative regulatory structure.
The diplomatic engagement follows El Salvador President Nayib Bukele’s visit to the White House last week, where he met with President Trump to strengthen cooperation on tariffs and cross-border crime control.
Political Undertones and Crypto Diplomacy
As outlined in the SEC meeting notes, the pilot program would allow U.S.-registered brokers to acquire digital asset licenses in El Salvador and issue non-security tokens in partnership with Salvadoran entities. Each pilot use-case would be capped at $10,000 per instance, limiting risk while promoting innovation in areas such as remittances, tokenized services, and fintech infrastructure.
The move underscores El Salvador’s continued ambition to cement its reputation as a regional crypto hub, building on Bukele’s historic 2021 decision to adopt Bitcoin as legal tender. With this new regulatory sandbox, the country aims to attract institutional experimentation and cross-border partnerships that could stimulate its economy and tech ecosystem.
However, the collaboration arrives at a politically fraught moment. The U.S.-El Salvador relationship has recently drawn criticism over a $6 million deportation agreement, under which undocumented immigrants—including those with pending legal cases in the U.S.—have been sent to Salvadoran prisons. The practice, reportedly involving detainees such as Kilmar Abrego Garcia, has been condemned by U.S. federal judges as unlawful and potentially unconstitutional.
New SEC Chair Paul Atkins Signals Policy Shift
The cross-border development also coincides with the swearing-in of Paul Atkins as the new SEC Chair on April 21. A vocal supporter of market-friendly regulation, Atkins has pledged to bring clarity and structure to the digital asset space, following the enforcement-heavy approaches of his predecessors, Gary Gensler and Mark Uyeda.
In his inaugural address, Atkins stated the agency’s new focus is to “provide a firm regulatory foundation for digital assets,” hinting at a pivot away from broad crackdowns toward more structured oversight and industry engagement.
The crypto industry has responded positively. Michael Saylor, CEO of Strategy (formerly MicroStrategy), praised the appointment, posting on X:
“SEC Chairman Paul Atkins will be good for Bitcoin.”
With Atkins at the helm and bilateral crypto talks accelerating, the U.S. may be entering a new chapter of international coordination—balancing financial innovation with diplomatic complexity.
Quick Facts
- The SEC and El Salvador’s CNAD have agreed to a cross-border digital asset sandbox, allowing U.S. brokers to issue non-security tokens in El Salvador.
- The initiative coincides with political fallout from the deportation of Kilmar Abrego Garcia, defying U.S. court rulings.
- El Salvador has positioned itself as a crypto-first economy, adopting Bitcoin as legal tender in 2021.
- SEC Chair Paul Atkins has pledged a more innovation-friendly regulatory approach to digital assets.
